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Drivers to sustainable manufacturing practices and circular economy: a perspective of
leather industries in Bangladesh
Md. Abdul Moktadir, Towfique Rahman, Md. Hafizur Rahman, Syed Mithun Ali
Department of Industrial and Production Engineering
Bangladesh University of Engineering and Technology
Dhaka-1000, Bangladesh
Sanjoy Kumar Paul
UTS Business School, University of Technology Sydney, Australia
Corresponding email: [email protected] (S.K. Paul)
Abstract
Sustainable manufacturing practices and the circular economy have recently received
significant attention in academia and within industries to improve supply chain practices.
Manufacturing industries have started adopting sustainable manufacturing practices and a
circular economy in their supply chain to mitigate environmental concerns, as sustainable
manufacturing practices and a circular economy result in the reduction of waste generation
and energy and material usage. The leather industry, in spite of it contributing remarkably to
a country’s economic growth and stability, does not bear a good image because of its role in
polluting the environment. Therefore, the leather industries of Bangladesh are trying to
implement sustainable manufacturing practices as a part of undertaking green supply chain
initiatives to remedy their image with the buyer and to comply with government rules and
regulations. The main contribution of this study is to assess, prioritize and rank the drivers of
sustainable manufacturing practices in the leather industries of Bangladesh. We have used
graph theory and a matrix approach to examine the drivers. The results show that knowledge
of the circular economy is paramount to implementing sustainable manufacturing practices in
the leather industry of Bangladesh. This study will assist managers of leather companies to
formulate strategies for the optimum utilization of available resources, as well as for the
reduction of waste in the context of the circular economy.
Keywords: Sustainable manufacturing practices; circular economy; sustainability driver;
leather industry; graph theory; matrix approach.
1. Introduction
The awareness that business is growing with the ongoing and rapid worldwide
industrialization indicates the importance of implementing sustainable manufacturing
practices and a circular economy. Sustainability is defined by the World Commission on
Environmental and Development as “development that meets the needs of the present
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generation without compromising the ability of future generations to meet their needs”
(World Commission on Environment and Development, 1987, p. 20). There is a relation
between an industry and the environment that is a crucial part of the industrial business
performance. According to various criteria, the importance of economic, social and
environmental dimensions varies from time to time (Andrews, 2015). It is obvious that the
success of an industry largely depends on its manufacturing performance. Accordingly,
sustainable manufacturing practices have recently gained popularity due to increased
consideration for environmental, social, and economic issues. Sustainable manufacturing is a
part of sustainable development, a framework which attempts to maintain a dynamic balance
between human, financial and environmental concerns (Lorek and Spangenberg, 2014). In a
circular economy, instead of discarding assets after only one product cycle, these are
continually re-acquired and reintroduced to market. A circular economy inspires waste
reduction. Therefore, this is also a part of sustainable development.
In the leather industry, the term sustainable manufacturing practice does not refer to the
indefinite production of leather products, footwear and finished leather. Instead, it denotes the
sustainability of human existence by continuously balancing social, environmental and
economic conditions (Hu et al., 2011). For a developing country like Bangladesh, the leather
processing industry plays a significant role in economic development. Sustainable
manufacturing practices will henceforth be the driving force of development in this sector.
Sustainable manufacturing practices are gaining popularity in Bangladesh for several reasons
(Jayal et al., 2010), including pressure from the market, customer awareness, government
promotions and regulations, understanding economic benefits, lowering manufacturing costs,
improving quality, attracting direct foreign investment, and knowledge of the circular
economy (Lieder and Rashid, 2016). Customer feedback is the main source of pressure from
the market (Westkämper, 2008). The government makes rules and regulations and places
importance on the green supply chain, remanufacturing and reverse logistics, which are all
part of sustainable manufacturing processes. Adopting sustainable manufacturing practices
will result in a decrease in costs and improve quality, which will increase direct foreign
investment (Roberts and Ball, 2014). Thus, adopting sustainable manufacturing practices in
this sector will be beneficial for the development of the country (Baldwin et al., 2005). As the
whole world is moving from a linear economy (i.e. extraction of resource to landfill) to a
circular economy (recycling with minimal extraction), the leather industry of Bangladesh
should also follow this modern trend to achieve the overall sustainable development of the
country (Guo et al., 2010).
In the Bangladeshi leather industry, adopting sustainable manufacturing practices and a
circular economy is a rising issue. Most previous sustainability studies have been made based
on developed countries (Syed et al., 2012). In the context of the leather industry of
Bangladesh, little research on sustainable manufacturing practices has been reported (Paul et
al., 2013). Leather processing and leather products’ manufacturing industries play an
important role in the economic growth of Bangladesh. Bangladeshi leather processing
industries are facing the challenges of structured sustainable manufacturing practices.
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Scientific knowledge and research may help Bangladeshi companies to adopt sustainable
manufacturing practices (Rosen and Kishawy, 2012).
Considering the importance of sustainable manufacturing practices and the circular economy
(Muduli et al., 2013; Ying and Li-jun, 2012), this paper aims to analyze drivers in the context
of the leather industry of Bangladesh. Thus, this paper contributes to the sustainable supply
chain management literature as follows:
We identify most important drivers to adopt sustainable manufacturing practices
in the leather industry of Bangladesh.
We propose a framework to examine and evaluate the drivers to sustainable
manufacturing practices using graph theory and matrix approach (GTMA).
This paper is structured as follows: Section 2 highlights materials, including the leather
industry of Bangladesh, sustainable manufacturing practices and the concept of the circular
economy. Drivers to sustainable manufacturing practices are highlighted in Section 3.
Research methodology is explained in Section 4. Section 5 explains the solution
methodology. An industrial case study is discussed in Section 6. Section 7 details the results
discussions and managerial implications. Finally, conclusions and recommendations for
future research are discussed in Section 8.
2. Materials
2.1. The leather industry of Bangladesh
The leather industry plays a vital role in the economy of Bangladesh. The Bangladeshi leather
industry is the second largest export earner after the apparel sector (Moktadir et al., 2017).
The government has declared this sector to be a priority sector. The leather industry has the
potential to create employment and entrepreneurship by creating an export-oriented business
opportunities. As per the statistics given by Export Promotion Bureau of Bangladesh (EPB),
for the financial year 2011-12 the leather sector grew by 17.5 % and earned US $765 million
in revenue, of which US $434.8 million was earned from footwear and leather products. This
constituted almost 57 % of the total revenue of the sector. In 2012-13, Bangladesh earned
almost US $1 billion as per the data of EPB which represented 28 % growth from the
previous year. In the following fiscal year 2013-14 Bangladesh earned US $ 1.12 billion from
exporting leather goods and resulted in 32% growth from the previous year. In the following
year, 2014-15, Bangladesh earned US$1.13 billion and the growth was 0.56% (EPB Report,
2015). The major importing countries of Bangladeshi footwear and other leather products are
Germany, China, Japan, USA, Spain, Italy, France, UK, and UAE (Hoque and Clarke, 2013).
The leather industry of Bangladesh includes 220 tanneries, 3,500 Small and Medium
Enterprises (SME) and 110 large firms which together control almost 90% of the export
market. According to EPB, the Bangladesh leather industry meets 10% of the total world
leather market. This sector employs more than 85,000 people, including a significant number
of women (Technical Report, 2013). Bangladesh has a large domestic raw material base
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(cattle) and is moving toward building a sustainable manufacturing environment to supply the
local and international market. In leather industry, up to 90% value addition is possible.
2.1.1 A brief of small-scale and large-scale leather companies
Small scale companies are those whose annual production is equal to or less than 5 million
square feet of leather. Large-scale companies are those which produce more than 10 million
square feet of leather per annum (Vogel et al., 2012).
There are about 2500 leather products’ manufacturing companies in Bangladesh. Also, there
are about 100 small to medium type leather products’ manufacturing companies which are
directly involved in producing leather products and meeting the national and international
demand.
2.2. Sustainable manufacturing practices
Sustainable manufacturing practices are very important in a manufacturing industry (Tan et
al., 2011; Alayón et al., 2017; Shankar et al., 2017). Sustainable manufacturing is the process
of creating manufactured products through economically sound processes that minimize the
total negative impact on the environment while ensuring the conservation of energy and
resources (Schrader and Thøgersen, 2011; Govindan et al., 2015). Sustainable manufacturing
includes producing sustainable products. It paves the way for employment, community and
product safety and security, ensuring a sustainable environment (Smith and Ball, 2012; Gupta
et al., 2016; Bellantuono et al., 2017). Many industries around the world now realize the
substantial financial and environmental benefits of sustainable manufacturing practices
(Sheldon, 2014; Peralta Álvarez et al., 2017). Sustainable manufacturing increases growth
and global competitiveness. Green manufacturing, reverse logistics, and green supply chain
are all integrated parts of sustainable manufacturing (Smith and Ball, 2012). This practice
involves the integration of technical feasibility, environmental responsibility and economic
viability (Sáez-Martínez et al., 2016). It increases operational efficiency by reducing costs
and waste (Ijomah, 2010). Moreover, it creates new customers and increases competitive
advantage by protecting and strengthening brand and reputation and by building public trust
(Geldermann et al., 2007).
Sustainable manufacturing practices build long-term business viability and success (Wang et
al., 2015). They also respond to regulatory constraints and opportunities (Bhanot et al., 2017;
Shankar et al., 2017). The Bangladeshi leather industry should move towards creating
opportunities by adopting sustainable manufacturing practices in a circular economy. Reuse
of products, remanufacturing, cascaded use and recovery are all part of sustainable
manufacturing practices and a circular economy (Feng and Joung, 2011). Environmental
friendliness, manufacturing cost, waste management, power consumption, operational safety
and personal health are some dimensions of sustainability elements of the manufacturing
process. The fields of study and action plans for sustainable manufacturing practices cover a
variety of areas. Sustainability in business processes, product development, supply chain,
production operations, distribution chain and sustainability by remanufacture, recycling,
reverse logistics belong to the field of study of sustainable manufacturing (Esmaeilian et al.,
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2016; Sáez-Martínez et al., 2016). Sustainable manufacturing practices mean using renewable
materials that don’t deplete the natural resources, use fewer materials and inputs that are non-
hazardous, modify production processes to use less materials and energy, use more efficient
transport and logistics systems, design products to be reusable, re-manufacturable, recyclable
and biodegradable and work with stakeholders and customers to reduce the environmental
impacts of the industry. The adoption of sustainable manufacturing practices in leather
industries of Bangladesh will thus lead to competitive advantages.
2.3. Circular economy
The circular economy is the concept of an industrial economy in which greater resource
productivity is promoted by developing ways to continually re-acquire and reintroduce the
discarded assets after the completion of one life cycle (Walter, 2015; Pomponi and
Moncaster, 2017). There are two types of value chains. One is a linear value chain and other
is the closed loop value chain (Zils, 2014). In a linear value chain, materials are sourced then
prepared for manufacturing. When the manufacturing process is completed, manufacturing
waste is generated. After manufacturing, products are ready for distribution by logistical
systems, which generate logistics waste (Zeqiang and Wenming, 2006). In the subsequent
sales and retail steps, packaging waste is generated (Macarthur, 2013). Consumption and
usage wastes are generated upon consumption of the products. In the linear value chain
scenario, none of the waste streams are further used or re-manufactured.
The circular economy is a closed loop value chain (Preston, 2012). In closed loop value
chains, all wastes are collected via the proper channels and returned to the re-manufacturing
unit to be reused (Yuan et al., 2006). The circular economy ensures sustainable
manufacturing processes and sustainable environmental practices by inherent waste
prevention and reduction (Fischer and Pascucci, 2017). A circular economy is the one which
is restorative and regenerative by design - it focuses on optimization of the value chain. It is
the positive, continuous development process which preserves and enhances natural capital
and optimizes resources (Andersen, 2007). There are several types of circular economy
business or industrial systems (Walter, 2015). Remanufacturing also belongs to the circular
economy where a manufacturer remanufactures the products returned by the customers, and
also gives a guarantee of the performance of the remanufactured products. A manufacturer
can also offer to repair products in a circular economy (Lewandowski, 2016; Lieder and
Rashid, 2016). Take-back management, where the remanufacturer takes back the products
after consumption via their own reverse logistics system, may also be a part of a circular
economy. A manufacturer can transform or recycle a product into a new material or products
(Andrews, 2015). A manufacturer can design waste-free products that can be integrated into
fully recyclable loops or biodegradable processes which are called cradle-to-cradle systems in
a circular economy (Su et al., 2013). Finally, in a circular economy, a manufacturer can offer
to refurbish their own products and return them to their customers (Genovese et al., 2017). In
this way, a circular economy goes beyond the boundary of waste prevention and waste
reduction to inspire technological, organization and social innovation to create sustainable
development within the value chain.
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2.3.1 Sustainable manufacturing practices in circular economy
Sustainable manufacturing practices and the circular economy in the leather industry means
economic, environmental and social sustainability (Hu et al., 2011). The boundaries of
economic sustainability are profitability, future competitiveness and economic impact on the
stakeholder. Resource efficiency and harm posed by emissions and waste streams are the
parameters of environmental sustainability. Social sustainability concerns health, safety and
improved social conditions for employees, and equity within the industry (Lieder and Rashid,
2016).
In the leather industry of Bangladesh, the usual practice is to use hides, skins, chemicals,
pigments and dyes as raw materials for leather processing. For leather products, the usual
practice is to use finished leathers, adhesives, accessories, thread, and synthetic materials as
raw materials. After production, the waste is predominantly solid materials such as tannery
sludge, waste leather, lining, adhesive, scrap, etc. (Pringle et al., 2016). In sustainable
manufacturing, this waste is returned to the primary stage of the process (Jawahir and
Bradley, 2016). In this way, sustainable manufacturing practices reduce waste by reuse, thus
maintaining the ideologies of the circular economy. Likewise, after the consumption of the
leather products by the customers, the manufacturer can take back the used product by
different ways and can utilize them for further remanufacturing processes (Moreno et al.,
2014).
In the Bangladeshi leather industry, these practices are not in operation. Therefore, there are
huge environmental effects from the operations of the leather industry (Bhowmik, 2013). The
wastes and chemicals have huge negative impact on the environment because these are not
recycled or treated properly. This has a huge impact on soil and water quality. Adopting
sustainable manufacturing practices is therefore crucial for Bangladesh. However, there are
many barriers to the implementation of sustainable manufacturing practices. These barriers
include technical and economic barriers, lack of knowledge about the circular economy, and
insufficient governmental support. However, there are also many drivers to adopt sustainable
manufacturing practices and a circular economy for the leather industry of Bangladesh. In
this research, we examine different drivers by graph theory and matrix approach (GTMA).
3. Drivers to sustainable manufacturing practices
In this section, we discuss the drivers and sub-drivers of sustainable manufacturing practices
in the context of the circular economy.
3.1. Knowledge about Circular Economy (KCE)
The circular economy plays an important role in sustainable manufacturing practices (Lorek
and Spangenberg, 2014). It can be regarded as an enabler or driver for the implementation of
sustainable manufacturing practices in the leather industry of Bangladesh. The circular
economy is an important issue because it creates lots of energy by preventing lots of waste.
Knowledge of the circular economy is critical (Programme des Nations Unies pour
l’environnement, 2011). Knowledge of the circular economy is a powerful driver for
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sustainable manufacturing practices. There are also many sub-drivers of this category.
Training and education are both extremely important for gaining knowledge about the
circular economy. Training is a powerful tool (Siemieniuch et al., 2015), and education by
formal or informal means can play a vital role in gaining knowledge. Importance should be
placed on the availability of information. As most of the research on the circular economy has
been based on developed countries, there is scarcity of available information on the subject of
the circular economy for developing countries. Scientific knowledge and research on this
topic based on the scenario of the leather industry of Bangladesh will fill this gap in the
knowledge.
Employee involvement and motivation from different industries can be a driving force to gain
knowledge on the circular economy (Diabat and Govindan, 2011). The employees of an
industry undertake most manufacturing level tasks. They can understand and explain the
current state of the industry. Thus, if employees come forward and take the initiative to
inform the top management of the benefit of a circular economy, then both the employees and
the top management can obtain information on this topic and this will be a driving factor.
There are many sectors in a supply chain. Sustainability of manufacturing practices should be
maintained by and through different sectors of the supply chain. Knowledge sharing in the
supply chain, therefore, plays a vital role in gaining knowledge on the circular economy
(Mittal and Sangwan, 2014). Waste prevention can be implemented in every sector of the
supply chain, which will be the ultimate target of sustainable manufacturing practices in the
circular economy. If this knowledge is not shared by stakeholders of different sectors of the
chains, it is therefore not possible to gain a complete understanding of this topic (Cordoba
and Veshagh, 2013). Hence, sharing knowledge is very important for sustainable
manufacturing practices.
Concerns about environmental impact and the state of the environment by the leather industry
of Bangladesh and by the regulatory departments of the government of Bangladesh will
increase the knowledge of both the top management of the industries and of government
authorities. Scientific knowledge and research will give a clear idea of the environmental
impacts. Thus, knowledge on the circular economy, attained by different means and ways,
will work as a strong driver to adopting sustainable manufacturing practices in the leather
industry of Bangladesh.
3.2. Customer Awareness (CA)
Customer awareness is one of the most important drivers to sustainable manufacturing
practices in a circular economy (Siemieniuch et al., 2015). The pressure from the customer
side to change the model from a linear economy to a circular economy is constantly
intensifying. The customers are becoming increasingly aware of and concerned about
environmental issues. Environmental collaboration with the customers is an important driver
in this regard, as customers are seeking environment friendly products. They choose
environment friendly products because they are getting information about this from the
government or via increased public awareness.
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Global climate pressure and ecological scarcity of resources are perhaps the two most
important drivers to sustainable manufacturing practices of a circular economy (Kulatunga et
al., 2013). The world is becoming more and more aware of the environmental need to create a
sustainable economy for future generations. It is obvious that the world is facing a scarcity of
resources because of high consumption and the current prevailing linear economy.
International organizations related to environmental sustainability are putting pressure on
developing countries to adopt sustainable manufacturing practices and circular economies
that will prevent ecological scarcity of resources. If sustainable manufacturing practices are
not adopted in a developing country like Bangladesh, we will face ecological scarcity of
resources with potentially irreversible environmental impacts.
Another important driver is community pressure which is a powerful tool (Siemieniuch et al.,
2015). There are lots of societies and associations working on promoting the sustainable
environment. They can put perhaps the most pressure on the industries to take initiatives to
adopt sustainable manufacturing practices and a circular economy. They can also encourage
the government to make strict laws for the implementation of sustainable manufacturing
practices. Customer awareness of green initiatives is also a vital driver of sustainable
manufacturing practices and the circular economy (Stock and Seliger, 2016). Customers are
very much aware of the benefits of green initiatives. They know the benefits of less carbon
emissions to the environment from recycling and remanufacturing processes. They will put
pressure on the community, industries and even the government to take steps to adopt
sustainable manufacturing practices and a circular economy (Elmualim et al., 2012).
Similarly, in the leather industry of Bangladesh, customer awareness will play a vital role as a
driver of sustainable manufacturing practices and a circular economy.
3.3. Leadership and Commitment from Top Management (LCTM)
Leadership and commitment from the top management is an another important driver towards
sustainable manufacturing practices and a circular economy (Siemieniuch et al., 2015). Top
management commitment will also play a vital role in the leather industry of Bangladesh with
respect to these issues. The top management of industries can take bold initiatives to maintain
a sustainable manufacturing environment. Collaboration between organizations is a part of
leadership of the top management. The organizations or industries can share ideas and
practices. They can also share experiences about sustainable manufacturing practices (Wang
and Bi, 2013). Every industry needs help from other industries. For example, the leather
product manufacturing industry needs leather from the leather making industry. Thus,
collaboration among related and dependent industries will play an important role in
sustainable manufacturing practices.
The world is an economically competitive place. The leather manufacturing industry should
thus take steps to create a sustainable manufacturing environment to ensure their competitive
advantage (Alayan et al., 2017). Every company in the industry should maintain a minimum
standard in manufacturing practices to ensure a competitive and sustainable manufacturing
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environment. There are many competitors in the leather industry in Bangladesh (Hoque and
Clarke, 2013). The competitors can impose pressure on themselves to implement sustainable
manufacturing practices and a circular economy. Competitor’s pressure towards greening can
be a crucial driver of sustainable manufacturing practices. As a part of their leadership, top
management can play a vital role in introducing cleaner technologies to their company’s
manufacturing process (Ghazilla et al., 2015). Cleaner technology denotes technologies that
ensure less water pollution, less carbon emissions, green transportation, green supply systems
and sustainable manufacturing processes in a circular economy (Nowosielski et al., 2007).
Leadership through a committed top management can ensure economic benefits for the
industries. Economic uncertainties can be anticipated, economic ups and downs can be
controlled and economic sustainability can be maintained by the dynamic leadership of the
top management. Long-term economic benefits can drive the adoption of sustainable
manufacturing practices in the context of leather companies. Therefore, the top management
can take initiatives to adopt these processes. Thus, leadership and commitment from the top
management of the leather companies of Bangladesh is a strong driver to sustainable
manufacturing practices and a circular economy in this industry.
3.4. Government Support and Legislation (GSL)
Government support and legislation is an important driver to sustainable manufacturing
processes and a circular economy (Agamuthu et al., 2009). In Bangladesh, the government is
already places importance on sustainable manufacturing practices in the leather industry as
part of new legislation. Environment degradation is occurring in Bangladesh as a result of the
lack of sustainable manufacturing practices of the leather companies of Bangladesh.
Government support and law enforcement is therefore necessary to ensure sustainable
manufacturing practices. Government funding may also assist in the timely implementation
of sustainable manufacturing practices in the Bangladeshi leather industry. A Central Effluent
Treatment Plant (CETP) can be established in leather processing by utilizing government
funding and government support (Mann et al., 2010).
The government can also impose laws regarding reusing and recycling of materials and
packaging. Reusing and recycling of materials and packaging is part of the circular economy
(Macarthur, 2014). This is considered sustainable manufacturing practice and can work as a
good sub-driver of government support and legislation. ISO 14001 certifications ensure the
sustainable practices of the manufacturing industries of the world. The Bangladeshi
government could legislate for the leather industry of Bangladesh to fulfill the requirements
of ISO 14001.
Environmental collaboration with suppliers is an important driver to sustainable
manufacturing practices and a circular economy. The suppliers should be aware of the
implementation of sustainable manufacturing practices. The government can encourage
suppliers to adopt these kinds of measures to ensure product sustainability. The government
can also encourage the industry to choose suppliers who will maintain a sustainability
standard. The government can also fund the adoption of sustainable manufacturing practices
by both suppliers and manufacturers. Hence, all of the drivers need to be addressed during
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sustainable manufacturing and circular economy implementation in the leather industry in
Bangladesh. The major drivers and the sub-drivers are summarized in Table A1 (for details
see Appendix 1).
4. Research Methodology
For the purpose of this study, we have initially reviewed the existing literature on sustainable
manufacturing practices and arranged several discussion sessions with industrial and
academic experts. From the explanation and brief description of the existing literature and
feedback from industrial experts and academic personnel, we have selected the most
prominent drivers to sustainable manufacturing practices in the context of the leather
industries of Bangladesh. In this research, we have used experts from two leather processing
companies and academic institutions from relevant fields. Then we have categorized drivers
under four major driver types. After that, we have developed customized interdependency
structural configuration among listed drivers. Then we have utilized GTMA for developing
the module. During the quantifying of each driver, we have provided the attribute-based
rating scale to assign industrial and academic experts. Experts have helped us formulate the
matrix with the help of an attribute base rating scale. Then, the permanent function for the
formulated matrix for each major driver is evaluated. Finally, we have evaluated the
permanent function of the system level matrix. The graphical presentation of the research
framework is shown in Fig. 1.
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Governmental Support
and Legislation
GSL1,GSL2,GSL3,GSL4
Existing literature
review
Experts’ and
academic opinion
Find the key driver of sustainable
manufacturing practices
Knowledge about
Circular Economy
KCE1, KCE2, KCE3,
KCE4, KCE5
Customer
Awareness
CA1, CA2, CA3, CA4
Leadership and
Commitment from
Top Management
LCTM1, LCTM2, LCTM3,
LCTM4, LCTM5
Develop customized interdependency structural configuration
Develop GTMA module
Plot diagraph for sustainable manufacturing practices drivers with nodes and edges which represent
inheritance and interdependency respectively
Convert the diagraph into matrix structure with diagonal elements and off-diagonal elements which
represent inheritance and interdependency of sub-drivers subsequently
Formulate matrix by using feedback from industrial experts and academic personnel for weights of
inheritance and interrelationship based on some scale
Put the obtained values of inheritance and interdependency in the sub-drivers matrix of SM practices
Evaluation of the permanent function for the above obtained matrix for each major driver
In the end, assessment of the permanent function of system level matrix
Fig.1. Proposed research framework
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5. Solution methodology
We adopt the technique of graph theory with matrix approach (GTMA) to quantify the impact
of drivers on sustainable manufacturing practices and a circular economy. As a decision-
making method, Graph Theory and Matrix Approach (GTMA) offers a generic, simple way
to make a decision with less computation. The theorems and algorithms of graph theory allow
one to represent the behavioral properties of the system. GTMA representations have proved
to be useful for modeling and analyzing various kinds of systems and problems in numerous
fields of science and technology. A graph is a collection of vertices joined by edges. It is an
ordered pair G = (V, E) comprising a set V which is a set of vertices or nodes or points and a
set E of edges or lines which are all 2-element subsets of V. Three steps are required to
construct a GTMA model. Step one is a directed graph (digraph) representation; the second
step is a matrix representation, and the last and third step is a permanent function
representation. The index value is obtained by calculating the permanent values of the
multinomial. This index value can be used for pair-wise comparison, ranking and optimum
value selection.
The GTMA model is famous among the researchers. This model is widely implemented in
areas of manufacturing science, i.e. improving machining performance (Seymouretal.,2005),
flexible manufacturing systems (Bollobas, 1999) and restructuring a manufacturing system
(Seymour et al., 2005). Several authors applied GTMA method which includes equipment
selection using integrated fuzzy Analytical Hierarchy Process (AHP) and a GTMA method
(Fathi et al., 2013), evaluation of the performance of Total Quality Management (TQM)
(Kulkarni, 2005) and investigation of the role of human factors in TQM through GTMA
(Grover et al., 2004).
Best-worst multi-criteria decision making (Rezaei, 2015), Analytic Network Process (ANP),
Analytical Hierarchical Process (AHP) and Structural Equation Modeling (SEM), technically
provide similar results. However, these pair-wise comparison techniques do not capture the
interdependence of variables. An additional calculation is required in order for AHP to
capture interdependency. ANP fails to capture hierarchical structures, though it does capture
interrelations among the variables (Saaty, 2004). SEM is a multivariable statistical analysis
tool that analyzes structural relations among the variables.
GTMA has no such limitations. However, this method is unable to show interactions among
the sub-factors and thus cannot be processed to a mathematical equation for the next step
assessment. GTMA serves our current objective best to allow quantifying the impact of
drivers of sustainable manufacturing in the leather industry of Bangladesh.
6. An industrial case study
Our adopted decision-making approach has been implemented in a real case study and used
to assess and quantify the drivers of sustainable manufacturing practices and the circular
economy in two leather processing companies in Bangladesh. To identify the most relevant
drivers of sustainable manufacturing practices, we review the existing literature and list out
most important drivers with the help of four experts. Two experts are taken from large scale
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leather processing companies, one from a small-scale leather processing company and one
from an academic field. They have sufficient experience in supply chain management,
environmental sustainability, green supply chain and green logistics. They have helped to
quantify the drivers of sustainable manufacturing practices in the circular economy context.
For the quantification of drivers, we have used the importance scale proposed by Muduli et
al., (2013). This relative importance of attributes (rij) is formulated on the basis of
weightings. In this research, attributes are identified and the corresponding value of
permanent, Fi is calculated with the help of assigned experts. The available attribute weight is
assigned for comparing the drivers and sub-drivers in two leather industries. The attribute and
assigned weightings are given in Table 1. The cause-effect relation among drivers is shown
in Fig. 2.
Table 1: Attributes and assigned weightings of attribute (rij)
Class description Relative importance of attributes
rij rji = 10-rij
Two properties are of equal importance 5 5
One property is slightly more important 6 4
One property is very importance over the other 7 3
One property is the most important over the other 8 2
One property is extremely important over the other 9 1
One property is exceptionally important over the
other
10 0
The graph theory technique with a matrix approach is a strong model which can help to
quantify the effect of sub-drivers of sustainable manufacturing practices and the circular
economy. In this research, GTMA is used to transfer the effect of drivers into numerical
values. The transformation process enables an effective comparison of the different sub-
drivers.
The application of graph theory and a matrix approach is well established in the literature
(Kaur et al., 2006; Muduli et al., 2013; Pishvaee and Rabbani, 2011; Rao, 2006; Wagner and
Neshat, 2010, 2010) and can help to analyze various types of problems which are generally
impossible in a real life system. The methodology of GTMA is:
1. Identification of the sub-drivers affecting the main drivers of sustainable
manufacturing practices and a circular economy taking into account relative
interdependencies among those sub-drivers.
2. Establishing interdependency digraphs among identified drivers and sub-drivers.
3. Conversion of the interdependency digraphs into matrices using equation (1).
4. Conversion to a parametric function of these formulated matrices using equation (2).
Before calculation of the parameter of the matrices, formulate the matrices with the
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help of expert opinions and scale the value of matrices from 1-5, where 1 indicates
very weak interdependency and value 5 indicates very strong interdependency.
5. Calculation of the corresponding parameter, which is generally a single numerical
value as obtained from Table 1.
6. Undertake the theoretical best value calculation and theoretical worst value
calculation for two leather companies adopting sustainable manufacturing practices
and a circular economy.
Fig.2.Diagram of cause and effect representation
6.1 Behavioral digraph
A directed graph is used to represent the behavioral relationship between main drivers in
terms of nodes and edges. In this research, we have used four major drivers. The behavioral
relationship between the four major drivers is thus shown in Fig. 3 and the behavioral
diagraph of customer awareness (CA) is shown in Fig. 4. In this research, nodes indicate
main drivers and edges indicate the interactions between them. Fi indicates the major drivers
and rij shows the degree of interdependence of the jth
driver on the ith
driver. In Fig. 3, rij is
depicted as a directed edge from node i to node j. The nodes F11, F
12, F
13, F
14 in Fig. 3
indicate the major drivers and rij indicates the interdependences among major drivers.
Similarly in Fig. 4, F2
1, F2
2, F23, F
24 indicate the sub-drivers of customer awareness (CA) and
KCE 3
KCE 4
LCTM5
Sustainable
Manufacturing Practices
Knowledge about Circular Economy Customer Awareness
Leadership and Commitment from
Top Management
Governmental Support and Legislation
KCE 1
LCTM1
LCTM3
LCTM2
LCTM4
GSL2
GSL1
GSL4
KCE 2
CA 2
CA4
KCE 5
CA 3
CA 1
GSL3
15
rij indicates the interdependencies among sub-drivers to the adoption of sustainable
manufacturing practices and a circular economy.
Fig. 3. Behavioral diagraph
Fig. 4. Behavioral diagraph for driver Customer Awareness (CA)
CA
CA
F2
CA
F4
GSL
F3
LCTP
r41 r14
r31 r13
r24
r42
r34
r43
r32
r23
r21
r12
CA
CA
F12
CA2
F12
CA4
F12
CA3
r41 r14 r31 r13
r24
r42
r34
r43
r32
r23
r21 r12
F1
KCE
F12
CA1
16
6.2 Matrix representation
The diagraphs in Figs. 3 and 4 are representative of the matrix. This constructive 4x4 matrix
indicates the four main drivers of sustainable manufacturing practices and a circular
economy. The explicit matrix is:
1 12 13 14
21 2 23 24
31 32 3 34
41 42 43 4
F r r r
r F r rSMP
r r F r
r r r F
(1)
Where Fi (i=1, 2, 3, 4) are the values of the major drivers, represented by the matrix nodes,
and rij is the relative importance of the ith
driver to the jth
driver, represented by the edge rij.
1 1 1 1 1
1 12 13 14 15
1 1 1 1 1
21 2 23 24 25
1 1 1 1 1
31 32 3 34 35
1 1 1 1 1
41 42 43 4 45
1 1 1 1 1
51 52 5
1
3 54 5
Per F Pe
F r r r r
r F r r r
r r F r r
r r r F r
r r r r
r KCE
F
where F11, F2
1, F3
1, F4
1, F5
1 represent KCE 1, KCE 2, KCE 3, KCE 4, KCE 5 respectively.
2 2 2 2
1 12 13 14
2 2 2 2
21 2 23 24
2 2 2 2 2
31 32 3 34
2 2 2 2
41 42 43 4
F r r r
r F r rCA
rPer F Pe
Fr
r r
r r r F
Similarly, F11, F2
1, F31, F4
1 represent CA1, CA2, CA3, CA4 subsequently.
1 1 1 1 1
1 12 13 14 15
1 1 1 1 1
21 2 23 24 25
1 1 1 1 13 31 32 3 34 35
1 1 1 1 1
41 42 43 4 45
1 1 1 1 1
51 52 53 54 5
F r r r r
r F r r r
Per F Per LCTP r r F r r
r r r F r
r r r r F
Here also F11, F2
1, F31, F4
1, F51 represent LCTP1, LCTP2, LCTP3, LCTP4, LCTP5
respectively.
17
2 2 2 2
1 12 13 14
2 2 2 2
21 2 23 24
4 2 2 2 2
31 32 3 34
2 2 2 2
41 42 43 4
F r r r
r F r rGSL
rPer F Pe
Fr
r r
r r r F
Similarly F11, F2
1, F31, F4
1 represent GSL1, GSL2, GSL3, GSL4 subsequently.
6.3 Permanent representation
The permanent matrix equation is a standard matrix function. This is used in combinatorial
mathematics (Jurkat and Ryser, 1966). The mathematical explanation for a permanent
function which corresponds to four matrix element digraphs by using the Jurkat and Ryser
formula is explained by the following equations:
4
1
.
( ) i ij ji k l ij jk ki ik kj ji l
i j k l i j k li
ij ji kl lk ij jk kl li il lk kj ji
i j k l i j k l
F r r F F r r r r r r F
r r r r r r r r r r r r
Per F
(2)
The permanent expression contains terms arranged in an n+1 grouping. Therefore, n=4 and
there are five groupings whose physical significance is expressed as follows:
The 1st grouping contains only one term and represents the interaction among
the four major drivers of sustainable manufacturing practices, that is F1, F2,
F3, F4.
The 2nd
grouping is not shown here as the self-loop in the diagraph is absent.
The 3rd
grouping has two terms of which each term represents two-driver
interdependence (i.e., rijrji) and a measure of the remaining drivers, n-2 (i.e., 2
here).
In the 4th
grouping, each term represents a set of three driver interdependences
rijrjkrki or its pair rikrkjrji and a measure of the remaining drivers, n-3 (i.e., 1
here).
The fourth grouping terms are arranged in two subgroups. The 1st sub-
grouping is a set of two two-driver interdependences (i.e., rijrji and rklrlk) and
measurement of remaining drivers, n-4 (i.e., 0). The second sub-grouping is a
set of four driver interdependences (i.e., rijrjkrklrli and rilrlkrkjrji) and a measure of
remaining drivers, n-4 (i.e., 0).
These rules result in the following matrix for CA:
18
2 2 2 2
1 12 13 14
2 2 2 2
21 2 23 24
2 2 2 2
31 32 3 34
2 2 2 2
41 42 43 4
3 5 6 6
5 3 6 4( ) exp ;
4 4 4 5
4 6 5 4
SS
F r r r
r F r rPer CA This matrix can be lained by the following ways
r r F r
r r r F
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
1 2 3 4 12 21 3 4 13 31 2 4 14 41 2 3 23 32 1 4 24 42 1 3 34 43 1 2
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
23 34 42 1 24 43 32 1 13 34 41 2 14 43 31 2 12 24 41 3 14 42 21 3
( )
(
F F F F r r F F r r F F r r F F r r F F r r F F r r F F
r r r F r r r F r r r F r r r F r r r F r r r F
2 2 2 2 2 2 2 2 2
12 23 31 4 13 32 21 4
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
12 21 34 43 13 31 24 42 14 41 23 32 12 23 34 41 14 43 32 21 13 34 42 21 12 24 43 31 14 42 23 31 13 32 24 41
)
( )
r r r F r r r F
r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r r
Replacing the numerical values for computing permanent matrix CA for a small-scale
industry.
PerSS(CA)=
3×3×4×4+(5×5×4×4+6×4×3×4+6×4×3×4+6×4×3×4+4×6×3×4+5×5×3×3)+(6×5×6×3+4×5×
4×3+6×5×4×3+6×5×4×3+5×4×4×4+6×6×5×4+5×6×4×4+6×4×5×4)+(5×5×5×5+6×4×4×6+
6×4×6×4+5×6×5×4+6×5×4×5+6×5×6×5+5×4×5×4+6×6×6×4+6×4×4×4)=10946.
Similarly, the permanent matrix of the other drivers can be computed for large-scale and
small-scale companies.
2 4 6 5
6 2 5 3( )
4 5 3 6
5 7 4 4
LSPer CA
9769
where PerSS
(CA) shows the index value for the customer awareness driver for small scale
leather companies and PerLS
(CA) shows the index value for the customer awareness driver
for large-scale leather companies in Bangladesh.
Other index values are given as follows:
Index value for knowledge about circular economy
4 4 6 5 6
6 5 6 5 6
( ) 4 4 4 4 6
5 5 6 4 5
4 4 4 5 5
SSPer KCE
320720
19
3 5 4 5 5
5 3 4 4 3
( ) 6 6 2 4 3
5 6 6 3 5
5 7 7 5 2
LSPer KCE
218259
Index value for lack of commitment from top management
5 7 7 6 6
3 3 7 6 6
( ) 3 3 2 6 7
4 4 4 4 5
4 4 3 5 5
SSPer LCTP
265254
5 6 6 5 8
4 4 6 7 7
( ) 2107484 4 3 4 8
5 3 6 5 8
2 3 2 2 2
LSPer LCTP
Index value for driver of governmental support and legislation
5 8 6 7
2 2 5 8( )
4 5 4 6
3 2 4 3
SSPer GSL
9100
4 6 5 6
4 3 4 5( )
5 6 4 4
4 5
10946
6 3
LSPer GSL
The sustainable manufacturing practices (SMP) value can be computed by assessing the
permanent value of matrix SMP.
17
320720 7 7 8
3 10946 4 3( ) 84.74 10
3 6 265254 2
2 7 8 9100
SSPer SMP
20
17
218259 7 7 6
3 9769 4 3( ) 49.19 10
3 6 210748 4
4 7 6 10946
LSPer SMP
6.4 Calculation of the theoretical best value for different major drivers for sustainable
manufacturing practices
The theoretical best value for a major SMP driver is acquired when the inheritance of all its
sub-drivers have the best value (here 1). The best value for driver KCE and LCTP for small-
scale leather companies is:
/
1 5 5 5 5
5 1 5 5 5
( ) 1683765 5 1 5 5
5 5 5 1 5
5 5 5 5 1
SS
KCE LCTPPer B
In the similar way, the best value for driver KCE and LCTP for large-scale leather companies
is:
/
1 5 5 5 5
5 1 5 5 5
( ) 1683765 5 1 5 5
5 5 5 1 5
5 5 5 5 1
LS
KCE LCTPPer B
The best value for other drivers such as CA and GSL are calculated similarly as follows:
21
/
1 5 5 5
5 1 5 5( ) 6776
5 5 1 5
5 5 5 1
SS
CA GSLPer B
/
1 5 5 5
5 1 5 5( ) 6776
5 5 1 5
5 5 5 1
LS
CA GSLPer B
6.5 Calculation of the theoretical worst value for different drivers
Technically, the theoretical worst value for a driver is acquired when the inheritance of all its
sub-drivers have its worst value, i.e., maximum value (5). The worst value for KCE and
LCTP drivers for small-scale leather companies is:
/
5 5 5 5 5
5 5 5 5 5
( ) 5 5 5 5 5
5 5
3
5 5 5
5 5 5 5 5
75000SS
KCE LCTPPer W
We can also compute the worst value for large-scale leather industries in a similar way is:
/
5 5 5 5 5
5 5 5 5 5
( ) 5 5 5 5 5
5 5
3
5 5 5
5 5 5 5 5
75000LS
KCE LCTPPer W
The worst values for the other drivers are:
/
5 5 5 5
5 5 5 5( ) 15000
5 5 5 5
5 5 5 5
SS
CA GPLPer W
22
/
5 5 5 5
5 5 5 5( ) 15000
5 5 5 5
5 5 5 5
LS
CA GPLPer W
Therefore we can compute the SMP index for worst and best value as:
17
168376 7 7 8
3 6766 4 3( ) 12.98 10
3 6 168376 2
2 7 8 6766
Per B
17
375000 7 7 6
3 15000 4 3( ) 316.41 10
3 6 375000 4
4 7 6 15000
Per W
Comparison
If the sustainable manufacturing practice driver matrices are identical, any two leather
companies selected for comparison purposes will be similar from the perspective of the
sustainable manufacturing drivers. However, the drivers of sustainable manufacturing
practices are not identical for both scales of leather companies (Grover et al., 2004).
Therefore, it is necessary to compute the similarity and dissimilarity of both scales of leather
companies. For this purpose, it is necessary to evaluate the coefficient of similarity Csi and
dissimilarity C’si (Kulkarni, 2005):
ij ij
si
ij ij
C BC
W B
Here,
Csi = Coefficient of similarity of the ith
driver with the best value.
Bij = Best value of the driver i of the jth
industry.
And, Cij = Current value of the ith
driver of the jth
industry.
'ij ij
si
ij ij
W CC
W B
Here,
23
C’si = Coefficient of similarity of the ith
driver with the worst value.
Wij = Worst value of the driver i of the jth
industry.
Cdi and C'di are the coefficients of dissimilarity with the best and worst values, respectively.
1
' 1 '
di si
di si
C C
C C
A smaller, Csi value points out more similarity with the best value. On the contrary, the
smaller the value of Csi, the less dominant or influential a driver will be, and vice versa.
Comparison between two drivers
For comparison, consider the two drivers knowledge about the circular economy (KCE) and
Governmental Support and Legislation (GSL) of large-scale companies.
1
375000 218259
375000 16837' 0.75 6
68sC
4
15000 10946
15000 6766' 0.4923sC
Here the coefficient of similarity of driver KCE with the worst value points out that the
intensity or strength of driver KCE is less than that of driver GSL for the case study.
7. Results, discussions and managerial implications
The calculated index values of the drivers of sustainable manufacturing practices and the
circular economy are presented in Table 2. Index values of a particular driver stipulate the
degree of its impact during sustainable manufacturing practices and a circular economy with
respect to the leather companies of Bangladesh. Higher index values indicate a greater impact
of the driver to sustainable manufacturing practices. A lower index value indicates a lower
impact (Muduli et al., 2013). The lower Sustainable Manufacturing Practices (SMP) index
values indicate that sustainable manufacturing practices have a less positive impact, and the
company needs to pay more attention to their adoption along with a circular economy. Higher
SMP values indicate that the company does not need to give higher attention to implementing
sustainable manufacturing practices.
In this research, the calculated SMP index indicates the fitness of the leather industry to adopt
sustainable manufacturing practices and a circular economy. The driver knowledge about the
circular economy (KCE) was shown to be the greatest driver to implementing SMP for large-
scale leather companies of Bangladesh. The value of KCE is closer to the worst value for
small-scale compared to large-scale leather companies which indicates that the small-scale
industry should take more care during SMP implementation compared to the large-scale
leather companies. In the case of best value for KCE, the large-scale companies are closer to
24
the best value of the driver, meaning that implementing SMP is easier for large-scale
companies.
Table 2: Index values of different drivers for both large- and small-scale leather industries
Type of
industry
Knowledge
about
Circular
Economy
(KCE)
Customer
Awareness
(CA)
Leadership
and
Commitment
from Top
Management
(LCTP)
Governmental
Support and
Legislation
(GSL)
Sustainable
Manufacturing
Practices
Index
Large scale 218259 9769 210748 10946 1749.19 10
Small scale 320720 10946 265254 9100 1784.74 10
Best Value 168376 6766 168376 6766 1712.98 10
Worst
Value
375000 15000 375000 15000 17316.41 10
For the driver Customer Awareness (CA), it is clear that the value of CA for large-scale
leather companies compared to small-scale companies is closer to the best value, indicating
that the driver of CA is more important for large-scale companies adopting SMP.
Another major driver of SMP implementation is Leadership and Commitment from Top
Management (LCTP). For this driver, the best value is closer to that of the large-scale leather
companies compared to the small-scale companies. This indicates that the driver (LCTP) is
more influential for large-scale leather companies. The complexity of the driver LCTP in the
case of small-scale companies will be higher than for the large scale companies.
The final major driver is Governmental Support and Legislation (GSL). The best value is
closer for the small-scale companies, meaning GSL influences small-scale leather companies’
more than large-scale leather companies in Bangladesh because small-scale leather
companies need more support from government for the adoption of sustainable
manufacturing practices. They do not have sufficient capital - that’s why small-scale leather
companies can be major beneficiaries if the government provides financial support. Likewise,
legislation can give more force to adopting sustainable manufacturing practices in small-scale
leather companies compared to large-scale leather companies in the context of Bangladesh.
This research is significant for both large- and small-scale leather companies in Bangladesh
in terms of the adoption of sustainable manufacturing practices through considering the
drivers identified in this research. To adopt sustainable manufacturing practices in the leather
industry, it is necessary to identify sustainable manufacturing implementing drivers. In this
study, we have considered four major drivers which have been ranked with the help of
GTMA. The comparison among the four divers as well as their index value will be helpful for
25
decision makers to concentrate on appropriate drivers during the sustainable manufacturing
practices implementing stage.
This research is expected to help decision makers identify various drivers and to explore the
exact nature of these drivers to assist implementing sustainable manufacturing practices.
Managers of leather-based companies may use this research to understand how sustainable
manufacturing practices can be a competitive advantage, whereas not adopting them may hurt
the performance of their companies. Decision makers make take guidance from these results
to formulate strategies to adopt sustainable manufacturing practices. The sustainable
manufacturing practices indices can be helpful in identifying the fitness of the leather
industry for implementing sustainable manufacturing practices in circular economy contexts
prior to implementation, as well as for modifying the current manufacturing practices.
8. Conclusions and future directions of study
The leather industry is ranked second in terms of contribution to the economic growth of
Bangladesh. Therefore, it is necessary for the leather industry to adopt sustainable
manufacturing practices to achieve a greater global competitive advantage. Sustainable
manufacturing practices have been widely adopted by various manufacturing industries in
developed countries. In Bangladesh, sustainable manufacturing practices are becoming
increasingly popular due to pressure from buyers and the global market. Sustainable
manufacturing practices in leather industries would undoubtedly be beneficial to the
economic development of Bangladesh.
This study shows the positive impacts of various drivers for implementing sustainable
manufacturing practices. This is the first crucial step for introducing sustainable
manufacturing practices and the circular economy. In this study, we have used the systematic
GTMA approach to determine the relative impact of the identified drivers. In this research,
we have considered four drivers such as knowledge about the circular economy, customer
awareness, leadership and commitment from top management, and governmental support and
legislation for the sake of simplicity of analysis. Knowledge about the circular economy was
shown to be the first priority driver due to its high positive impact on implementing
sustainable manufacturing practices in the leather industry of Bangladesh. In future, other
drivers could be considered for more in-depth analysis of the leather industry in Bangladesh.
We have derived the factors using the extant literature review and experts’ opinion.
Additional methods such the Analytic Hierarchy Process (AHP) or the fuzzy Analytic
Hierarchy Process (FAHP) could be used to rank the factors in future relevant studies and
then use the top ranked factors in a GTMA approach.
We believe the methodology undertaken in this research could be applied to other industries,
including pharmaceuticals, textiles, chemicals and the plastics industry to examine drivers to
sustainable manufacturing practices and the circular economy.
26
Appendix 1
Table A1: Major drivers and sub-drivers with relevant references
Major drivers Sub-drivers Simplified Meanings Relevant
Literature
A. Knowledge
about
Circular
Economy
(KCE)
1 Training and
Education (KCE1)
Practicing and having profound knowledge on
circular economy gives importance to proper
training at home & abroad
(Bechtel et al.,
2013; Ghazilla
et al., 2015;
Lieder and
Rashid, 2016;
Macarthur,
2014; Wu et
al., 2010)
2 Availability of
information (KCE2)
Proper practice of circular economy demands
availability of related information
3 Employee
involvement/motivat
ion (KCE3)
Practicing of SM and circular economy gives
some explicit tremor among the employees
which sustains their motivation
4 Knowledge sharing
in supply chain
(KCE4)
To sustain in the market, stakeholders of
different supply chain need to share their
knowledge and ideas which will help
manufacturers initiate new launches
5 Concerns about
environmental
impacts and the state
of the environment
(KCE5)
Degradation of natural resources, energy and
interests on the importance of environmental
issues motivate to adopt circular economy
B. Customer
Awareness
(CA)
1. Environmental
collaboration with
customer (CA1)
Issues of environmental collaboration with
customers help to create awareness about
circular economy
(Bechtel et al.,
2013; Bhool
and Narwal,
2013; Hanna et
al., 2000;
Mudgal et al.,
2009; Walker
et al., 2008)
2. Global climate
pressure and
ecological scarcity
of resources (CA2)
Environmental pollution, degradation of
natural resources are prime concerns of the
present world and thus world forums demand
the adoption of circular economy to reduce
ecological scarcity of resources
3. Community pressure
(CA3)
Community pressure to reduce degradation of
environment initiates customer awareness on
environmental issues
4. Customer awareness
to green initiatives
(CA4)
Customers awareness on environmental
sustainability pressures manufacturers to
adopt sustainable manufacturing practices
C. Leadership
and
Commitme
nt From
Top
Manageme
nt (LCTP)
1. Collaboration
between
organizations
(LCTP1)
Leadership comes first in the time of
collaborating between organizations to come
forward in stepping towards sustainable
manufacturing practices
(Bechtel et al.,
2013; Ghazilla
et al., 2015;
Green et al.,
1996; Mudgal
et al., 2009;
Mutingi, 2013;
Nordin et al.,
2014; van
Raaij et al.,
2008)
2. Competitive
advantage (LCTP2)
Sustainable manufacturing practices ensure
competitive advantages for the manufacturers
in the market
3. Competitors
pressure towards
greening (LCTP3)
To sustain in the competitive market,
manufacturers need to introduce sustainable
manufacturing practices, i.e. circular economy
4. Introducing Cleaner
Technology
(LCTP4)
Due the enormous significance of green
activities, cleaner technologies in the present
time, manufacturers are forced to adopt new
sustainable practices for sustainable
environment
27
5. Economic benefit
(LCTP5)
The economic demand and crisis pressures to
adopt sustainable practices which impact on
optimal resources and energy thus ensures
economic benefits
D. Governmen
tal Support
and
Legislation
(GSL)
1. Funding from
Government (GSL1) To ensure proper sustainable manufacturing
practices government is pressured to fund for
smooth implementation
(Bechtel et al.,
2013; Diabat
and Govindan,
2011; Nordin
et al., 2014;
Tay et al.,
2015)
2. Reusing and
recycling materials
and packaging
(GSL2)
Sustainable practices like reusing, recycling
are popular nowadays
3. ISO 14001
certification (GSL3)
To comply with international rules and
regulations, i.e. ISO 14001, manufacturers
are forced to adopt sustainable manufacturing
practices throughout the process
4. Environmental
collaboration with
suppliers (GSL4)
To comply with the total quality and
sustainable manufacturing practices, suppliers
are pressured to maintain environmental
collaboration for smooth operations
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